The business-jet fractional-ownership fleet continues to grow at a phenomenal rate and now accounts for more than 60 percent of total industry backlog, reflecting falling orders from traditional customers. The situation leaves major U.S. manufacturers heavily exposed; indeed, so important have fractional sales become that Bombardier, Gulfstream, Cessna and Raytheon are all involved in such programs. Cessna, Gulfstream and Raytheon each rely on frax operators for more than 75 percent of their current backlog.
Aircraft scheduled for delivery to fractional providers in the next three years number more than the entire fractional fleet did just two years ago. If all orders are fulfilled, the top four fractional operators–NetJets, Flight Options, Flexjet and CitationShares–will receive 455 aircraft in the next two years, compared with 452 units in fractional service at the beginning of 2001, according to London consultancy Airclaims (see box). NetJets alone is slated to receive 225 aircraft in this period (about two a week throughout 2005), a sum equivalent to its whole fleet just four years ago.
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